I would argue they are in a much more stable position vs Netflix. They are the one stop shop for every kind of audio. Retention will be the true barometer here.
How is a company that is not profitable and will never make more than a 30% gross margin on a customer in a more stable position?
They are also suffering from the “DropBox problem”. Streaming music is not a product. It’s a feature. Their largest competitors don’t have to make money on streaming music. Streaming music for Apple and Amazon are just features to sell hardware.
They are also suffering from the “DropBox problem”. Streaming music is not a product. It’s a feature. Their largest competitors don’t have to make money on streaming music. Streaming music for Apple and Amazon are just features to sell hardware.